How to Develop an App Like Afterpay?| A Complete Guide

“Buy Now, Pay Later” apps have disrupted modern shopping by offering customers a way to buy products instantly and split payments into smaller interest-free instalments.

Among these platforms, Afterpay-style solutions have become one of the most transformative financial innovations of the decade.

Consumers love BNPL apps because they remove the need for credit cards, avoid heavy interest charges and allow flexible repayments.

Businesses love them because conversion rates rise steeply, cart leaving decreases and average order value increases.

In simple terms “BNPL app development is one of the newest fintech opportunities.”

If you’re a startup, retailer, enterprise, or fintech entrepreneur planning to build an app like Afterpay, this guide is designed for you.

We break down everything:

• How Afterpay-like apps work
• How BNPL platforms make money
• Core + advanced features
• Technical requirements
• Development cost
• Timeline
• Regulations you must follow
• And how SoftCurators can build your custom BNPL platform

By the end of this guide, you’ll have a clear, actionable roadmap to developing your own installment payment app.

Let’s begin.

What Is an Afterpay-Like App? Understanding BNPL

A BNPL (Buy Now, Pay Later) app allows customers to purchase products instantly and pay for them later in equal installments—usually with zero interest.

An Afterpay-like app typically allows users to split payments into four equal installments paid every two weeks.

Businesses integrate the app into their checkout flow, and users select “Pay in Installments” to complete the transaction.

These apps sit between customers and merchants:

• Customers make purchases without paying full price upfront.
• Merchants receive the full amount instantly.
• The BNPL company collects repayments from the customer over time.

It’s a win–win for both parties.

Key Goals of a BNPL App

• Increased consumer purchasing power
• Enable interest-free installments
• Improve merchant sales & conversions
• Provide fast, secure and suitable online payments

BNPL vs Credit Cards

• No credit score required
• No revolving debt
• No heavy interest charges
• Transparent payment schedules

BNPL apps have grown from simple payment tools to complete financial platforms offering digital wallets, budgeting tools, subscriptions, merchant dashboards, shopping portals and even loyalty programs.

If you want to develop an app like Afterpay, your product must offer:

• Trust
• Convenience
• Low friction
• High security
• Merchant integrations
• Real-time risk assessment

Next, let’s break down how the model works operationally.

How Does an App Like Afterpay Work? 

The working of a BNPL app is simple for users but it’s technically a bit complex for developers. Here’s a step-by-step breakdown:

Step 1: Users Sign Up

Users create accounts using:

• Phone number
• Email
• Or social login
• KYC (optional but recommended)

The system validates identity and builds a basic risk profile.

Step 2: User Shops & Chooses “Pay Later”

At checkout, users select the BNPL option.

The platform performs instant checks:

• Spending limit
• Payment history
• Risk score
• Available balance
• Merchant credibility

Step 3: User Pays First Installment

The app charges the user 25% of the cart value upfront.

Step 4: BNPL App Pays the Merchant in Full

Merchants receive the full payment instantly (deducting processing fees).

Step 5: Remaining Instalments are Auto-Debited

The app automatically deducts the next 3 instalments weekly from:

• Debit cards
• Credit cards
• Bank accounts

Step 6: Reminders and Notifications

Push notifications confirm that users never miss payments.

Step 7: Rewards and Loyalty (Optional)

Users may earn:

• Cashback
• Discounts
• Installment waivers

Behind the Scenes: What Happens Technically

• Payment gateway integration
• Risk scoring engine
• Transaction monitoring
• Fraud detection
• User wallet management
• Merchant Analytics

This smooth workflow is exactly why Afterpay-like apps exploded in popularity.

Why Are BNPL Apps So Popular?

BNPL apps are growing rapidly for several reasons—but the biggest one is consumer behavior.

Today’s digital-savvy customers want:

• Faster checkouts
• Zero-interest purchases
• No credit card debt
• Predictable installment plans
• Transparency without hidden charges

All of this fits perfectly with the BNPL model.

Key Reasons for Their Popularity

1. Shifting Towards Cashless Payments

Online shopping is at an all-time high. BNPL apps effortlessly integrate into eCommerce platforms, offering a smooth payment experience.

2. Younger Users Avoid Credit Cards

Gen Z and Millennials dislike credit card debt. BNPL offers financial flexibility without long-term liability.

3. Merchants See Higher Sales

Merchants report:

• 30–50% higher average order value
• 20–35% increase in conversions
• Lower cart abandonment

4. No Interest Creates Trust

Most BNPL plans remain interest-free, making them more appealing than loans.

5. Better Financial Control for the Users

Budgeting tools, reminders and instalment plans provide a wisdom of control.

6. BNPL Apps Are Growing

They now offer:

• Wallets
• Shopping hubs
• Cashback
• Rewards
• Subscriptions

The result? A complete financial ecosystem.

BNPL has become not just a payment method—but a lifestyle convenience.

How Do Apps Like Afterpay Make Money?

Even though Afterpay-style apps offer interest-free instalments, they generate high revenue through multiple channels.

Main Revenue Streams:

1. Merchant Fees (Primary Revenue Source)

Merchants pay 3–7% per transaction to the BNPL provider.

Why merchants agree:

• Higher conversions
• Larger basket size
• More returning customers

2. Late Payment Fees

If a user misses an installment, a fixed penalty is charged.

This is not encouraged but still contributes to revenue.

3. Affiliate & Marketplace Commissions

BNPL apps often include:

• Deals
• Shopping recommendations
• Merchant storefronts

They earn a commission for every sale they drive.

4. Interchange Fees

Every transaction processed through registered cards or wallets generates transaction fees.

5. Premium Subscriptions (Optional)

Premium users receive:

• Higher spending limits
• Faster approvals
• Special deals

6. Data Insights (Ethical and Compliant)

Combined with shopping behavior insights help retailers fit campaigns.

Together, these monetization channels make the BNPL apps highly profitable, supporting the scalability of the model.

Must-Have Features to Include When You Build an Afterpay-Like App

To build a successful BNPL platform, you must integrate a user-friendly, secure and well-organized feature set. Below is a breakdown of essential features for three user types.

User Features (Must-Have)

1. Easy Sign-Up

Quick registration using phone number, email, or social login increases acceptance.

2. User KYC & Identity Verification

This helps:

• Reduce fraud
• Assess user risk
• Set spending limits

3. Shopping Dashboard

Displays:

• Available merchants
• Current orders
• Recent transactions

4. Spending Limit Display

Clear visibility of:

• Available credit
• Repayment Due Dates

5. Installment Calculator

Helps users understand repayment before purchasing.

6. Payment Methods

Support for:

• Cards
• Bank accounts
• Wallets

7. Notifications & Alerts

Reduce defaults and keep users informed.

8. Transaction History

Shows all activities for transparency.

9. User Support (Chat/Email/FAQ)

Essential for user trust.

Merchant Features

1. Merchant Dashboard

Includes:

• Transaction analytics
• User trends
• Revenue reports

2. Integrations (API + Plugins)

Merchants can integrate BNPL into:

• Mobile apps
• Websites
• POS systems

3. Payout Management

Full visibility into payouts, fees, and settlement cycles.

4. Fraud Detection Tools

Helps merchants validate risky transactions.

Admin Panel Features

1. User Management

Complete control over:

• Approvals
• Limits
• Blocking
• Suspicious activity monitoring

2. Merchant Management

Admins can onboard, monitor, and verify businesses.

3. Payment Management

Handle settlements, invoices, and refunds.

4. Risk Scoring Engine

The core of BNPL systems.
Evaluations:

• Transaction patterns
• Spending behavior
• Device fingerprinting

5. Reports & Analytics

Depending on:

• Monthly revenue
• Default rate
• Merchant performance

Developing an App Like Afterpay: 6 Steps to Success

Here is the complete development roadmap SoftCurators follows for BNPL platforms.

Step 1: Research the Market

This stage shapes the foundation of your BNPL app.
We study:

• Target users
• Spending behavior
• BNPL competition
• Industry risks
• Regulatory compliance
• Merchant needs

Market research answers key questions:

• What installment model will you use?
• What industries will you target first?
• How will you differentiate yourself?

This ensures your app solves real market gaps.

Step 2: Build App Wireframes

Wireframes are visual plans of your application.

They map out:

• User journeys
• Checkout flow
• Installment selection
• Dashboard layout
• Merchant integration workflow

Wireframes reduce development errors and ensure clarity before coding begins.

Step 3: Select the Tech Stack

A scalable BNPL platform must use high-performance technology.

Frontend Technologies:

• Flutter
• React Native
• Swift
• Kotlin

Backend Technologies:

• Node.js
• Python Django
• Java Spring Boot

Database:

• MongoDB
• PostgreSQL
• MySQL

Payment Integrations:

• Stripe
• PayPal
• Razorpay

Security Tools:

• Identity verification APIs
• Fraud detection engines

Step 4: Design UI/UX

A BNPL app must look and feel frictionless.

We design:

• Clean layouts
• Simple checkouts
• Minimum steps
• High readability
• Friendly interfaces

A professional UI builds user trust instantly.

Step 5: Initiate Development (Coding)

Development is divided into:

Frontend Development

• Installment screens
• Profile pages
• Checkout experience

Backend Development

• Transaction engine
• Merchant Settlement Systems
• Risk Assessment Module

API Development

• Merchant plugins
• Authentication
• Payment processing

This is the longest stage—requiring 2–4 months depending on complexity.

Step 6: Testing & Deployment

BNPL apps must undergo:

Test Types

• Functional testing
• Security testing
• Load testing
• Usability testing
• Payment gateway testing

After QA approval, we deploy:

• Android app
• iOS app
• Admin panel
• Merchant Dashboard

SoftCurators also provides post-launch maintenance.

Why Afterpay-Type Apps Are Gaining Popularity Today

BNPL is not a trend—it’s a financial revolution.

Key Growth Drivers:

1. Customers prefer interest-free payments
2. Credit card usage is declining
3. Merchants want better conversions
4. Flexible payment options encourage responsible spending
5. Online shopping is booming

BNPL is expected to grow massively across industries like:

• Fashion retail
• Electronics
• Travel
• Healthcare
• Education
• Entertainment subscriptions

In essence, installment-based payments have become a lifestyle.

Cost to Develop an App Like Afterpay

The cost depends on:

• App complexity
• Feature set
• UI/UX design
• Backend intelligence
• Required integrations
• Compliance needs
• Region of development

Average Development Cost

Type of App	Estimated Cost
Basic BNPL App	$15,000 – $20,000
Mid-Level BNPL App	$20,000 – $40,000
Advanced Afterpay-Like App	$40,000 – $100,000+

Custom AI-based fraud systems increase costs but improve performance.

Additional Costs

• Maintenance (monthly)
• Cloud hosting
• Payment processing fees
• Customer Support Tools

SoftCurators provides detailed cost estimates based on your exact needs.

How Long Does It Take to Develop an App Like Afterpay? 

The development duration depends on complexity.

Stage	Time Required
Research & Analysis	2–3 weeks
Wireframing	1–2 weeks
UI/UX Design	3–5 weeks
Development	10–16 weeks
Testing	3–4 weeks
Deployment	1 week

Total Time Required: 3–5 Months

More advanced features include:

• AI credit scoring
• Custom risk engines
• Merchant Marketplace
• Omni-channel integrations

…extend the timeline.

SoftCurators — Your Partner in Building Your BNPL App

SoftCurators specializes in world-class fintech application development services, including BNPL, digital wallets, banking apps, lending apps, and more.

Why Clients Trust SoftCurators

• Expert FinTech engineers
• Proven development process
• Expertise in compliance & security
• Scalable architecture
• Transparent pricing
• UX-focused design approach

SoftCurators’ BNPL App Development Services

• Requirement analysis
• Roadmap creation
• UX/UI design
• App + backend development
• Merchant Dashboard
• Fraud detection system
• Payment gateway integration
• Cloud deployment
• Long-term maintenance

If you want a reliable, scalable, and secure BNPL app, SoftCurators is your perfect technology partner Buy Now Pay Later app development services.

Conclusion

BNPL is redefining digital payments. If you want to build an app like Afterpay, the opportunity is brighter than ever. Consumers want flexibility, and merchants want higher conversions—BNPL delivers both.

This guide explains everything you need:

• Market Insights
• How Afterpay-like apps work
• Monetization strategies
• Features
• Tech stack
• Cost
• Development roadmap

Now comes the execution.

SoftCurators is here to transform your idea into a high-performing BNPL platform built for scale.

Whether you’re entering the retail, travel, healthcare, or subscription economy—the right BNPL solution can position your business as a modern financial leader.

FAQs